Target's deadline for closures puts pharmacies in 'catch-22', CBC News

Dan Dimovski, the president of the Pharmacy Franchisee Association of Canada, said Target has given its pharmacists until Feb. 26 to shut down their franchises inside the stores. But he said that's impossible because they have to follow provincial regulations to close.
February 6, 2015

Target's deadline for closures puts pharmacies in 'catch-22'
Pharmacies want moving expenses to be covered and want to operate until the stores close
CBC News


Independent pharmacists are asking to be recognized in Target's bankruptcy filings and want more time to relocate their businesses. (Darren Calabrese/Canadian Press)

The closure of Target stores across the country has pharmacists scrambling.

Both the Sudbury and North Bay stores have pharmacies.

Dan Dimovski, the president of the Pharmacy Franchisee Association of Canada, said Target has given its pharmacists until Feb. 26 to shut down their franchises inside the stores.

But he said that's impossible because they have to follow provincial regulations to close.

“We're talking about medications, processes to protect the patient and our position in our association is the actions of Target are undermining the Canadian processes that protect the patients on a provincial level,” he said.

Dimovski noted pharmacists must apply for accreditation 30 days before moving to a new location. If they are closing, they need to ensure their stock of medications is transferred to another pharmacy or returned to the supplier.

“We're in a catch-22 situation,” Dimovski continued.

“We don't have approval in the province of Ontario, where the majority of franchisees are, to make these transfers or make these changes in less time. And honestly there is a reason for that period of time. They need to verify that the pharmacies that have relocated or moved comply and have all the things necessary for patient care.”

PFAD represents more than 80 independent pharmacies operating in Targets across the country.

The association has taken legal action to be recognized in Target's bankruptcy case and is drafting letters to premiers and MPs highlighting the concerns of independent pharmacists over the imminent store closures.

Dimovski said the association wants to be recognized in Target's bankruptcy process, and is asking for their moving expenses to be covered and to be able to operate until the store closes.

The U.S. retail chain announced in January it will close all its locations in Canada. There are 133 stores across the country with about 17,600 employees.

Target Canada did not respond to a request for comment.


1. LesStewartMBA
The Arthur Wishart Act (Franchise Disclosure), 2000, AWA is the ON and de facto CDN franchise law. 2010 was the last attempt to strengthen it to protect the 40,000 ON franchise families (up to $8-billion sunk cost investments, 600,000 employees)

Tim Hortons's franchisor got the job done by defeating the modernization of this 1960s-era law. These prospectus-like documents form the basis of any rational business due diligence. Since 1970 the US FTC has ensured that US small business families can access these documents publicly.

ON Ministry of Government and Consumer Services said this to me about the current Hortons (96,000 jobs, "down-and-dirty CCAA"?) mess:

"The AWA does not require disclosure documents to be publicly available or provided to the ministry
• The ministry does not intervene in disputes among franchisees and franchisors
• We would encourage you to contact Tim Horton’s directly for the information you are seeking
• Included in the Minister’s mandate letter is a commitment to ensure Ontario has modern laws that facilitate an efficient market and prosperous business climate
• To meeting this commitment, the ministry is reviewing 19 corporate and commercial statutes, including the AWA"

I replied to the Ministry that I had asked 3G Capital for a copy of their CDN disclosure documents and would keep them informed of 3Gs response.

I have the USA Hortons documents because they are free to download (without a salesman breathing down your neck) in 4, soon to be 5 (New York) states. None of the 5 (soon to be 6) of the CDN franchise provincial laws require an online repository of these crucial due diligence documents.

"Efficient market and prosperous business climate" for mom-and-pop CDN franchisees?

Les Stewart
FranchiseFool WikiFranchise FranchiseBanker

2. Tante C
The current leadership of Target Corp has the Dayton forefathers spinning in their graves. The secret to the Dayton family success was impeccable preparation in everything they did. (For those who don't know, the Dayton family started a department store in Minneapolis, MN in 1902, sixty years later they opened the first Target store.) The Dayton who set up the first Target store monitored it closely and tweaked the merchandise on a continuous basis finding what did and didn't work. That manner of doing business was maintained as the chain expended. Back in my youth, that attention to detail was so strong that what was available on in a Target in St. Louis Park might not be stocked in Roseville (site of the first store). Obviously, this attention to detail is no longer part of the corporate culture, pity - and sorry a MN company has let you down.

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